Salik Expands into Parking Solutions at Dubai Mall, Enhancing Revenue Streams

Salik Company PJSC is set to revolutionize the parking experience at Dubai Mall with its barrier-free parking solution, marking a significant step in its strategic growth.

Salik Expands into Parking Solutions at Dubai Mall, Enhancing Revenue Streams

Summary

Salik Company PJSC announces the launch of its barrier-free parking solution at Dubai Mall, beginning July 1, 2024. This initiative aims to enhance ancillary revenue streams and is part of Salik's strategy to expand its smart mobility solutions.

Salik Company PJSC (Salik), Dubai’s exclusive toll gate operator, is making headlines with its latest venture into parking solutions at the world-renowned Dubai Mall. Starting from July 1, 2024, Salik will operate a barrier-free parking payment system across the Fashion, Grand, and Cinema parking zones at Dubai Mall. This five-year agreement with Emaar Malls Management LLC (Emaar Malls) signifies a strategic move to diversify revenue streams and leverage Salik’s advanced technology platform beyond its core tolling business.

Salik’s innovative parking solution utilizes vehicle plate recognition technology to automatically deduct parking fees from Salik user accounts, providing a seamless, ticketless parking experience for mall visitors. This initiative aims to minimize congestion and enhance convenience, aligning with Salik’s ambition to become a global leader in sustainable and smart mobility solutions.

Ibrahim Sultan Al Haddad, Chief Executive Officer and Board Member of Salik Company PJSC, expressed his enthusiasm for the project, stating, 'Today’s announcement marks a significant milestone as we approach the launch of our unique partnership with Emaar Malls, providing a seamless parking experience for visitors to this world-famous destination. This is an important step in our strategic evolution to become a global leader in sustainable and smart mobility solutions and is in line with our ambition to build out ancillary revenue streams as a long-term growth lever.'

With over 4.1 million active vehicles already registered with Salik, the company boasts an exceptionally high penetration rate, covering over 90% of UAE vehicles. This extensive customer base means that no major customer acquisition efforts are needed for the new parking solution. Salik is responsible for designing, financing, developing, installing, and managing the parking payment collection system, while Dubai Mall will provide the necessary local infrastructure, office space, and car park maintenance.

Salik’s move into parking solutions is a core growth pillar in its updated corporate strategy, aimed at enhancing ancillary revenue streams. The company sees a compelling opportunity to expand further into the private parking market in Dubai, in line with its aspiration to become a global leader in sustainable and smart mobility solutions. As Salik continues to build on this initiative, the potential for similar partnerships in other locations looks promising.

Given the company's strong market position, high customer penetration, and strategic growth initiatives, investors may find Salik's stock an attractive hold. The expansion into parking solutions at a high-traffic location like Dubai Mall could provide a stable ancillary revenue stream, contributing to long-term growth and profitability.

Source

Press release

Summary

Salik Company PJSC announced that its barrier-free parking payment solution will be operational at Dubai Mall starting July 1, 2024, covering the Fashion, Grand, and Cinema parking zones. The agreement with Emaar Malls will last for five years. Salik's technology will enable automatic fee collection using vehicle plate recognition, enhancing the parking experience for visitors. This initiative is part of Salik's strategy to expand its ancillary revenue streams beyond its core tolling business. Salik aims to leverage its high penetration rate in the UAE and is exploring further growth opportunities in the private parking market in Dubai.

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